GS Caltex to build heavy oil upgrading facility by 2013

GS Caltex, South Korea’s second-largest oil refiner, announced plans to build a fourth heavy oil upgrading facility at its Yeosu refining complex, in an effort to meet growing demand for lighter, cleaner-burning fuels. Construction will begin in March and the new units will go on stream in 2013. The facility includes a 29,000 barrel per day (bpd) vacuum gasoil fluid catalytic cracking unit and a 24,000 bpd gasoline hydrodesulfurization and alkylation unit. The new unit will increase GS Caltex’s total heavy oil upgrading capacity to 268,000 bpd, or 35.3% of its crude distillation capacity of 760,000 bpd, the highest among the country’s four oil refiners. Project cost is estimated at 1.1 trillion won (US$978.44 million). (January 5, 2011)